Labour is contemplating the nationalization of British Steel, which is currently owned by a Chinese company. Sir Keir Starmer has stated that he is exploring all possibilities to safeguard steel production in the UK.
The Prime Minister told a group of senior MPs this afternoon he was ‘absolutely committed to steel production in this country’.
‘Preserving our steel capacity is crucial,’ remarked Sir Keir, underscoring the importance of the industry. The government is engaged in urgent discussions with Jingye, the Chinese firm that acquired British Steel in 2020.
The Government is engaged in crunch discussions with British Steel’s parent company over the proposed closure of its blast furnaces at Scunthorpe.
It would mean the end of steel-making in the Lincolnshire town after 160 years and could cost up to 2,700 jobs.
According to Bloomberg, there is a serious consideration within the government regarding the potential takeover of British Steel into public ownership in an effort to prevent the closure of the plant in Scunthorpe.
Labour is holding active discussions about nationalisation, according to the website.Â
The blast furnaces at Scunthorpe are the last two domestic sources of virgin steel, which is made from iron ore rather than recycled steel.
The Prime Minister told a group of senior MPs this afternoon he was ‘absolutely committed to steel production in this country’
The Government is engaged in crunch discussions with British Steel’s parent company over the proposed closure of its blast furnaces at Scunthorpe.
The blast furnaces at Scunthorpe are the last two domestic sources of virgin steel, which is made from iron ore rather than recycled steel
There are concerns their closure will make Britain more reliant on imports from abroad.
British Steel has reportedly rejected a £500million Government offer to help its transition to a greener form of steel production with a new electric arc furnace.
Appearing before Parliament’s Liaison Committee, which is made up of the chairs of all other select committees, Sir Keir was grilled about ministers’ ongoing efforts.
‘We are in the middle of discussions, so I hope the committee will forgive me if I don’t go through each of the fine detail,’ the PM said.
‘But I’m absolutely committed to steel production in this country. All of our plans are going to require infrastructure and more steel in this country.
‘So the last thing we want to do is lose our capacity on steel.
He added: ‘For Scunthorpe, I’ve spent some time at Scunthorpe talking to the management, talking to the workforce there.
‘And I know first hand the impact that any loss of capacity at Scunthorpe will have on the workforce, the community and the country.
‘Therefore we will keep talking, we have made an offer but all options are on the table in relation to Scunthorpe.
‘I think it’s really important and we’re in the middle of those discussions at the moment.’
Asked what he meant by ‘all options on the table’, Sir Keir replied there was ‘a limit to what I can say’ as he pointed to ‘ongoing discussions at the moment’.Â
Tory leader Kemi Badenoch had earlier warned nationalising British Steel must be a ‘last resort’.
She said the Scunthorpe steel plant was ‘in peril’ because of Labour’s ‘wrong choices’.
‘Nationalisation has got to be a last resort,’ she told reporters during a visit to Salisbury.
‘We need steel production in this country. It is important for national resilience.
‘But as I said, whether it’s with the jobs tax, what they’ve been doing all around the economy, energy costs in particular, that’s why we’re not having steel companies wanting to produce it.
‘Our energy costs are too high and Labour is making those costs even higher.’
Reform UK demanded the Government nationalise British Steel within the next three days.
The party’s leader Nigel Farage said: ‘Whilst the Government dithers and delays, we have produced a plan to ensure the survival of British Steel.
‘Without immediate action to nationalise Jingye’s UK business within the next three days the UK’s last blast furnaces risk being shut down permanently.
‘The UK’s steel industry is broken. Reform UK will fix it.’
The UK’s steel industry was recently hit by US President Donald Trump’s imposition of 25 per cent tariffs on all steel entering America.
Industry minister Sarah Jones today hosted a meeting of the Steel Council attended by the chief executives of Tata, Liberty and British Steel, as well as trade union leaders and the trade association UK Steel.
Ms Jones said: ‘We know this is a concerning time for our steel industry in the face of global challenges.
‘That’s why we’re working in lockstep with industry to drive forward our steel plan so it can help the sector secure jobs, deliver growth and power the modern economy.
‘This Government will always stand up for UK steelmaking, and where others may talk tough, we are acting, with money ready to go to back up British industry.
‘With our steel plan we’re placing it at the heart of our growth mission, and we’ll keep all options on the table to help steel in the UK thrive and deliver on our Plan for Change.’
